The National Food Authority (NFA) on Monday said it is keen on importing 250,000 metric tons (MT) of rice by November to beef up its buffer stock in the first quarter of 2017.
Tomas R. Escarez, NFA officer in charge-administrator, said the country must also prepare for La Niña, which could paralyze economic activities in flooded areas. The country usually experiences torrential rains during La Niña months.
“The country already imported 250,000 MT but then we think we need more because the months of January and February are considered lean months, because there is no harvest of rice,” Escarez told reporters on the sidelines of the food agency’s 44th anniversary celebration on Monday.
“So the NFA recommended to the NFA council, based on the standby authority of 500,000 MT, to allow us to import another 250,000 MT. We are just awaiting the instruction of the NFA council,” he added.
Escarez said the NFA council will meet on Tuesday to discuss the purchase of additional rice imports as part of the agency’s “standby authority.”
“There will be an NFA council meeting and they will evaluate whether we have to import it right away,” he said.
The NFA’s current rice stock stands at 578,700 MT, which is good for 18 days. Escarez said the 18-day stock is higher than the volume mandated by the Legislative-Executive Development Advisory Council of at least 15 days at any given time. “But because we are facing La Niña and the months of January and February are considered to be temporary lean months, I think we have to add some more. Because usually by the end of December, we have a stock that is good for at least 22 days,” Escarez said.
“Most likely, we will be allowed to import before December. We planned to have the government-to-government procurement earlier but it’s really up to the council. But most probably the importation would happen around November,” he added.
Earlier, the NFA Council has awarded the contract for the supply of 250,000 MT of imported rice to Thailand and Vietnam. Thailand will supply 100,000 MT, while Vietnam will supply the remaining 150,000 MT.
The NFA said 40 percent, or 100,000 MT, of the rice shipment is expected to be delivered by end-September, while the remaining 60 percent, or 150,000 MT, will arrive next month. According to the Philippine Atmospheric, Geographical and Astronomical Services Administration (Pagasa), the likelihood of La Niña striking the country has become “slimmer.”
“The forecast we released a few months back, which said there is a 55 percent probability of La Niña until February 2017, is no longer true,” Pagasa Visayas Director Engr. Oscar Tabada said in a previous report.
According to the Food and Agriculture Organization, La Niña is the cooling of sea surface temperatures in the tropical Pacific. It occurs roughly every three to five years and lasts from six to 24 months.